The government has officially set March 31, 2026, as the deadline for the privatisation of the Kenya Pipeline Company (KPC).

The announcement follows the approval of the privatisation method for KPC by the cabinet, the subsequent tabling of the required Sessional Paper before the National Assembly by the Cabinet Secretary for the National Treasury and Economic Planning, and its endorsement by Parliament on October 1, 2025.

According to the Privatisation Commission, in a notice dated October 14, 2025, the process will be guided by the provisions of the Privatization Act, 2005, which mandates the Commission to implement Kenya’s privatisation program.

The commission outlined several key objectives for privatising the state-owned oil transporter. The move is intended to unlock KPC’s full potential, ensure broad national benefits, and raise funds critical to the implementation of the 2025/2026 national budget.

“The privatization presents a strategic opportunity to empower ordinary Kenyans to own a stake in one of the country’s most profitable and strategic enterprises. It will also promote inclusive economic growth, strengthen transparency, and enhance corporate governance through listing on the Nairobi Securities Exchange (NSE),” the notice read in part.

Additionally, the privatisation is expected to enhance operational efficiency and innovation, while proceeds from the sale will support key development priorities, reduce government borrowing, and deepen Kenya’s capital markets.

The Kenya Pipeline Company, incorporated on September 6, 1973, and fully operational since 1978, plays a pivotal role in Kenya’s economy mandated to safely and efficiently transport petroleum products, including Motor Spirit Premium (MSP), Automotive Gas Oil (AGO), Jet A-1, and Illuminating Kerosene (IK).

Beyond serving the domestic market, KPC’s pipeline network extends its services to Uganda, Rwanda, the Eastern Democratic Republic of Congo, Northern Tanzania, Burundi, and South Sudan, reinforcing Kenya’s status as a regional petroleum hub.

Currently, the company is wholly owned by the Government of Kenya, with 99.9% of shares held by the National Treasury and 0.1% by the Ministry of Energy and Petroleum.

In accordance with Section 25 of the Privatization Act, 2005, Parliament approved that the Kenya Pipeline Company be privatized through an Initial Public Offering (IPO) of shares on the Nairobi. 

The government views the privatization of KPC as a balanced approach to economic empowerment and institutional modernization, aligning with national interests while attracting private sector participation.

Funds raised from the transaction are expected to support the development of critical infrastructure, reduce reliance on debt financing, and stimulate private investment in key sectors.

The Privatization Commission confirmed that the transaction is expected to be completed by March 31, 2026, setting the stage for one of Kenya’s most significant privatization exercises in recent years.